BI Unit 1
BI Unit 1
Unit: 1
• B. Tech (IOT)
• 5th Semester
• Professional Course
LTP Credits
3 – 0– 0 3
Course objective:
This course covers fundamental concepts of Business Intelligence tools, techniques, components and its future. As well
as a bit more formal understanding of data visualization concepts and techniques. The underlying theme in the course is
feature of Tableau, its capabilities.
Business Intelligence (BI), Scope of BI solutions and their fitting into existing infrastructure, BI Components and
architecture, BI Components, Future of Business Intelligence, Functional areas of BI tools, End user assumptions, setting
up data for BI, Data warehouse, OLAP and advanced analytics, Supporting the requirements of senior executives including
performance management, Glossary of terms and their definitions specific to the field of BI and BI systems.
CO 1 Apply quantitative modelling and data analysis techniques to the solution of real- K1, K2
world business problems
CO 2 Understand the importance of data visualization and the design and use of many K2
visual components
CO 3 Understand as products integrate defining various analytical process flow. K2
CO4 Learn the basics of troubleshooting and creating charts using various formatting K3, K4
tools.
CO 5 Learn basics of structuring data and creating dashboard stories adding K5, K6
interactivity dashboard stories.
• This course introduces data visualization theories, techniques, and tools particularly for analyzing and presenting
business data. Students will design, develop, and evaluate effective visualizations and dashboards, using various
development tools.
• This course focuses on how business intelligence in Tableau uses business analytics tools that make it easy to combine
data from multiple sources, analyze and visualize information. It helps trainees in making more informed and better
decisions to guide the business. After the completion of the course trainee will be through with all the concepts of
business intelligence and Tableau.
• The objective of this course is to assist the folks in running a business strategically. One of the main objectives of this
training is to train you on all the concepts that are related to business intelligence and Tableau. The purpose of the
Business Intelligence using Tableau training program is to support better business decision-making. Topics like BI –
Business Intelligence, Business Intelligence with Tableau, are covered in the training program.
• Business intelligence (BI) is essentially the collection of tools and processes that are used to gather data and turn it into
meaningful information that people can use to make better decisions. Using Excel, you can create powerful reports,
scorecards, and dashboards. You can bring data into Excel, sort, and organize data, and use it to create reports and
scorecards. You can also use powerful analytic capabilities in Excel to visualize and explore data. Through these tutorials,
we are going to understand business intelligence and data visualization using the Tableau tool. This training will help you
learn about.
• This course introduces data visualization theories, techniques, and tools particularly for analyzing and presenting
business data. Students will design, develop, and evaluate effective visualizations and dashboards, using various
development tools.
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 PO10 PO11 PO12 PSO1 PSO2 PSO3
CO1 2 1 1 2 2 1 1 1 1
CO2 1 2 2 1 3 1 1 1 2 1 2 2 2 1
CO3 1 2 1 1 1 2 1 2 2 1 1
CO4 1 2 1 1 1 1 1 1 1 2 2
CO5 1 3 1 1 1 1 1 2 1 2
AVG 1.2 2 1.25 1 1.6 1.5 1 1 1 1.25 1.33 1.6 1.33 1.4 1.5
• BI(Business Intelligence) is a set of processes, architectures, and technologies that convert raw data into
meaningful information that drives profitable business actions. It is a suite of software and services to transform
data into actionable intelligence and knowledge.
• BI has a direct impact on organization’s strategic, tactical and operational business decisions. BI supports fact-
based decision making using historical data rather than assumptions and gut feeling.
• BI tools perform data analysis and create reports, summaries, dashboards, maps, graphs, and charts to provide
users with detailed intelligence about the nature of the business.
• Business intelligence (BI) refers to the procedural and technical infrastructure that collects, stores, and analyzes
the data produced by a company’s activities.
• BI is a broad term that encompasses data mining, process analysis, performance benchmarking, and descriptive
analytics. BI parses all the data generated by a business and presents easy-to-digest reports, performance
measures, and trends that inform management decisions.
• Aligning processes to the business objective – BI helps detect functions, people or activities that are improperly aligned
with core business objectives. This in turn helps management take immediate action and improve practices. Lean and
mean is the way to go.
• Providing insights to the most difficult business problems – Quick access to large volumes of data helps extract critical
facts at a rapid speed, and as they say, time is money!
• Determine patterns in customer behavior – Knowledge of customer patterns helps an enterprise know who its most
valuable customers are, how to retain them and in some cases, when to let certain customers go. The better you know
your target audience, the more likely you are to grow your business.
• Empower employees – BI equips businesses with the most important tool for successful decision making: real-time
information! With this, every employee can make informed decisions, increasing the success rates of business
processes multi-fold. Real time information helps transform effort into efficiency.
• Monitor the usage of companies’ resources – With BI, organizations can determine the cause of loss of
productivity by tracking internet usage and how much time employees spend on activities unrelated to work.
Better use of resources equals better returns for the company.
• Helps in cost control – BI improves the visibility of functions like inventory management. It lowers storage and
maintenance costs by preventing to in manufacturing, by maximizing production efficiency.
• Scale performers in the organization – BI helps reveal information on who the top and bottom performers are and
enables one to reorganize a team to reap better returns from existing talent. It’s always beneficial to let your top
performers know who they are.
• Eliminate time spent on data entry –BI, when well-configured, can reduce and in some cases eliminate the time
spent on data entry; time which can then be spent analyzing outcomes and making better and more informed
decisions.
• When you first start to implement the business intelligence technology strategy, it may be sufficient to host all your
BI components on a single server. In my experience, a single powerful off-the-shelf server is preferable to several
budget servers. I make this point because hardware virtualization enables server administrators to deploy server
instances with a lower specification than a modern laptop. These small servers are not appropriate for BI
development.
BI tools are resource hungry – we measure their efficiency in person-hours and business value, not CPU cycles.
• The resource utilization pattern of BI is different from operational systems. The server will either be 80%+ utilized
or not at all. It is common to schedule ETL jobs overnight, regular report processing in the early morning, with ad
hoc querying and analytics running during the day. With server utilization staggered over the course of the day, it
makes sense that each discrete process has access to all the available hardware resources We will consider these
in the sub sections below.
• OLAP analyzes business information in a multi-dimensional manner to assist with complex calculations, trend analysis,
and data modeling. With OLAP, the end-user gets an opportunity to analyze specific data in multiple dimensions to
obtain the necessary insight for making a decision.
• Businesses are constantly bringing information together to perform different analysis. They have a sharp need to get all
the data in one place to achieve an accurate and reliable understanding of different aspects of the data. OLAP can help
them achieve just that: get quick access to multi-dimensional analysis results.
• This technology stands behind the majority of business intelligence applications. It deals with data discovery as well as
capabilities for report viewing, complex calculations for analytics, and assistance with “what if” scenario planning
• Corporate Performance Management (CPM) encompasses methods, metrics, activities, and systems, which are used
to monitor and manage the business performance of a company. CPM software processes the focused information to
turn it into operational plans.
• This process and methodology offer business owners an integrated approach to planning, forecasting for finance,
sales, marketing, HR, and operations. When this methodology is implemented, it joins company strategies with plans
and executions, thus helping a business succeed and improve.
• CPM is an important component of business intelligence for companies that are looking for such changes as budget
remodeling, cost-cutting, upgrading organization strategy, better KPIs alignment, and improving the process of
financial planning .
• Real-time business intelligence (RTBI) is used when sorting, and analyzing business data and operations have to be
done at the collection stage. Real-time BI allows the company to get insights into the business process as quickly as
possible to take strategic action.
• This BI component is demanded when live business insight is required, which is not a rarity in the fast-paced
environment of some industries.
RTBI is becoming especially popular in fast-paced modern society. Using software designed for RTBI, a company can
create quick responses to real-time trends over email, apps, messengers, etc.
• For example, RTBI can help create special offers at the most suitable time possible to get the highest
conversion rate. Another example is limited-time specials for restaurants or supermarkets that have to do
with perishable products and high demands at certain times of the day. All of the above can be done while
the client is on the website and near one of the company’s physical locations.
DATA WAREHOUSING
• Data warehousing allows the business owner to go through different data subsets and examine components that
could help make the right business decisions. For example, warehousing gives a user an opportunity to monitor
certain sales information collected on Mondays for the past 50 weeks.
• It helps create important statistics about the business and the industry. Warehousing implies storing formidable
amounts of data in numerous special ways, which could be useful for analysis.
• Different technologies exist to help the user take advantage of data warehousing quickly and effectively.
DATA SOURCES
For the business intelligence process and methodology to be integrated, it is important to have the right
understanding of the data sources. Pulling raw data from different sources, internal and external is vital to the
diverse analysis options.
Companies tend to store huge amounts of operational data. BI needs to navigate between the data sources. In
most companies, mainframe legacy systems create a foundation for the data centers because they can deal with
large volumes of data. However, such data is usually difficult to procure since many legacy apps are often
obsolete or proprietary.
SPEED. BI tools can provide the requested data in the shortest amount of time, often in real-time. The value of
business-related information often depends entirely on speed.
RELIABILITY. The quality of information collected with BI tools is reliable but only when the right components are used.
Important information can be obtained in small fragments, analyzed, and evaluated to provide value.
COMBINATION. The ability to find answers to complex questions based on processing smaller pieces of
information. The system can offer a high degree of abstraction if necessary to build a solid model data.
NAVIGATION. The ability to find the right information at the right time and the right place. BI allows navigating
through data to identify the necessary pieces for analysis.
PRESENTATION. The better the BI system performs, the fewer effort is required from the user to interpret the
information to assist with decision-making. The speed of the BI results depends on the presentation accuracy.
• DATA INTEGRATION AND CLEANSING TOOLS. To effectively analyze the data collected for a BI program, an
organization must integrate and consolidate different data sets to create unified views of them. The most widely
used data integration technology for BI applications is extract, transform and load (ETL) software, which pulls
data from source systems in batch processes. A variant of ETL is extract, load and transform (ELT), in which data
is extracted and loaded as is and transformed later for specific BI uses. Other methods include real-time data
integration, such as change data capture and streaming integration to support real-time analytics applications,
and data virtualization, which combines data from different source systems virtually.
• DATA INTEGRATION AND CLEANSING TOOLS. To effectively analyze the data collected for a BI program, an
organization must integrate and consolidate different data sets to create unified views of them. The most widely
used data integration technology for BI applications is extract, transform and load (ETL) software, which pulls
data from source systems in batch processes. A variant of ETL is extract, load and transform (ELT), in which data
is extracted and loaded as is and transformed later for specific BI uses. Other methods include real-time data
integration, such as change data capture and streaming integration to support real-time analytics applications,
and data virtualization, which combines data from different source systems virtually.
We know we said there are about six million ways to use BI, but we didn’t want to list ALL of them. Just like
there are different types of business intelligence systems, there are plenty of different ways to apply them.
You’d probably get tired before finishing the full list. So we shortened it down to a much more manageable
101 examples, which you can peruse to find some of the best uses of BI systems.
Data Warehouse is a relational database management system (RDBMS) construct to meet the requirement of
transaction processing systems. It can be loosely described as any centralized data repository which can be queried
for business benefits. It is a database that stores information oriented to satisfy decision-making requests. It is a
group of decision support technologies, targets to enabling the knowledge worker (executive, manager, and analyst)
to make superior and higher decisions. So, Data Warehousing support architectures and tool for business executives
to systematically organize, understand and use their information to make strategic decisions.
Data Warehouse environment contains an extraction, transportation, and loading (ETL) solution, an online analytical
processing (OLAP) engine, customer analysis tools, and other applications that handle the process of gathering
information and delivering it to business users.
• A Data Warehouse can be viewed as a data system with the following attributes:
• It is a database designed for investigative tasks, using data from various applications.
• It supports a relatively small number of clients with relatively long interactions.
• It includes current and historical data to provide a historical perspective of information.
• Its usage is read-intensive.
• It contains a few large tables.
• A data warehouse, or enterprise data warehouse (EDW), is a system that aggregates data from different
sources into a single, central, consistent data store to support data analysis, data mining, artificial intelligence
(AI), and machine learning. A data warehouse system enables an organization to run powerful analytics on
huge volumes (petabytes and petabytes) of historical data in ways that a standard database cannot.
• Data warehousing systems have been a part of business intelligence (BI) solutions for over three decades, but
they have evolved recently with the emergence of new data types and data hosting methods. Traditionally, a
data warehouse was hosted on-premises—often on a mainframe computer—and its functionality was
focused on extracting data from other sources, cleansing and preparing the data, and loading and maintaining
the data in a relational database. More recently, a data warehouse might be hosted on a dedicated appliance
or in the cloud, and most data warehouses have added analytics capabilities and data visualization and
presentation tools.
Ms. Vatika Jalali ACSAI0519 BI Unit 1
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OLAP
• OLAP (for online analytical processing) is software for performing multidimensional analysis
at high speeds on large volumes of data from a data warehouse, data mart, or some other
unified, centralized data store.
• Most business data have multiple dimensions—multiple categories into which the data are
broken down for presentation, tracking, or analysis. For example, sales figures might have
several dimensions related to location (region, country, state/province, store), time (year,
month, week, day), product (clothing, men/women/children, brand, type), and more.
• But in a data warehouse, data sets are stored in tables, each of which can organize data into
just two of these dimensions at a time. OLAP extracts data from multiple relational data sets
and reorganizes it into a multidimensional format that enables very fast processing and very
insightful analysis.
1. This is an approach to selling goods and services in which a prospect explicitly agrees in advance to receive
marketing information______
A. data mining
B. customer managed relationship
C. permission marketing
D. one-to-one marketing
2. ________________defines the structure of the data held in operational databases and used by operational
applications.
E. Data mining metadata
F. Operational metadata
G. Data warehouse metadata
H. User-level metadata
5. This is an arrangement in which a company outsources some or all of its customer relationship management
functions to an application service provider (ASP).
A. Customer Information Control System
B. spend management
C. hosted CRM
D. online transaction processing
Q.6 Describe a scenario where BI tools helped in making a critical business decision.
1. This is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to
data to help enterprise users make better business decisions___________
A. Data mart
B. Data mining
C. Business intelligence
D. Artificial intelligence
6.In an Internet context, this is the practice of tailoring Web pages to individual users’
characteristics or preferences__________
E. customer valuation
F. customer-facing
G. Web services
H. personalization
7. Business intelligence is only possible with big applications like power BI____________
A. Yes, if it doesn’t have a database, it’s not really BI
B. No, Business intelligence means using data to support your case and displaying it in an understandable way
C. No, anything can be used as business intelligence
D. Yes, Expensive software is necessary
8. The important aspect of the data warehouse environment is that data found within the
data warehouses ______
E. time-variant
F. subject-oriented
G. integrated
H. None
Ms. Vatika Jalali ACSAI0519 BI Unit 1
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MCQ s
9. This is the processing of data about customers and their relationship with the enterprise in order to improve the
enterprise’s future sales and service and lower cost_____________
A. customer relationship management
B. CRM analytics
C. database marketing
D. customer relationship management
10.This is a broad category of applications and technologies for gathering, storing, analyzing, and providing
access to data to help enterprise users make better business decisions___________
E. Data mart
F. Data mining
G. Business intelligence
H. Artificial intelligence
Ms. Vatika Jalali ACSAI0519 BI Unit 1
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MCQ s
12. Which BI feature is most important for senior executives focused on performance management?
• a) Real-time data visualization
• b) Social media integration
• c) Email automation
• d) Virtual reality interface
15. What is the first step in setting up data for Business Intelligence?
a) Creating data visualizations
b) Cleaning and preprocessing the data
c) Buying new hardware
d) Hiring a consultant
• https://
www.shaalaa.com/question-paper-solution/university-of-mumbai-be-data-warehousing-mining-business-intellig
ence-semester-7-be-fourth-year-2014-2015-old_9
• Business intelligence uses technology, such as software programs like Excel, to analyze data and provide actionable
information to help business executives make informed choices and decisions.
• BI can be applied to making both operational and strategic business decisions.
• Business intelligence is created by a team of professionals that includes data engineers, data analysts, and data
visualization specialists.
• Data visualization is the representation of data through use of common graphics, such as charts, plots, infographics, and
even animations. These visual displays of information communicate complex data relationships and data-driven insights
in a way that is easy to understand.
• Data visualization is the visual presentation of data or information. The goal of data visualization is to communicate data
or information clearly and effectively to readers. Typically, data is visualized in the form of
a chart, infographic, diagram or map.
Thank You
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